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MIRA
INFORM REPORT
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Report Date : |
21.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
MICHELLE FOOTWEAR
(PTY) LTD |
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Registered Office : |
23 Harden Avenue,
Seaview, Durban, Kwazulu Natal |
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Country : |
South Africa |
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Date of Incorporation : |
14.12.1978 |
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Com. Reg. No.: |
1978/004988/07 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers of
Ladies Leather Footwear |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME
MICHELLE FOOTWEAR (PTY)
LTD
PHYSICAL ADDRESS
23 Harden Avenue
Seaview
DURBAN
Kwazulu Natal
POSTAL ADDRESS
P O Box 25059
ROSSBURGH
4072
TELEPHONE NUMBER: 031 465 3110
FAX NUMBER: 031 465 3252
SHAREHOLDERS
M A GEDYE (Majority)
W H LUDLOW
ASSOCIATE COMPANIES
STREET LEGAL FASHIONS CC
NITIN PROPERTIES (PTY)
LTD
OCTOPUS FOOTWEAR
INTERNATIONAL CC
DIRECTORS
M A GEDYE
W J GEDYE (Son)
W H LUDLOW
G R Q SEARLE
J NAIDOO
It was stated that Mr A
Munsami passed away in 2006.
BANKERS
NEDBANK, Jacobs branch,
Account Number: 1307006345. It was
stated that the subject enjoys overdraft facilities to an extent of R300 000,
secured by the personal guarantees of the shareholders. Utilisation of the overdraft is stated to
fluctuate. It was also stated that the
subject factors its book with Nedbank.
DATE REGISTERED
14 December 1978
Registration Certificate
Number: 1978/004988/07.
The subject was
commenced as a new business.
VAT NUMBER
4180105217
MAJOR OPERATION
Manufacturers of ladies
leather footwear.
MAJOR SUPPLIERS
The subject imports
leather from Pakistan, India and Italy and deals locally with:
AVIOCEAN Durban
GREENAWAYS Durban
BALMEL Durban
JOHN WHITTLE COMPONENTS
Durban
CHAMBERLAIN PHIPPS
Durban
MAJOR CUSTOMERS OR BUSINESS
SECTORS
Shoe retailers and chain
stores
AREA OF DISTRIBUTION AND SELLING
South Africa
EXPORTS
UK, Australia and
neighbouring countries
TOTAL EMPLOYEES
400
OTHER PREMISES
None
OWNED OR LEASED
he premises are reported
to be owned by NITIN PROPERTIES (PTY) LTD and the market value is R6 000 000,
bonded in favour of Nedcor Investment Bank for an outstanding amount of R1 200
000.
AUTHORISED SHARE CAPITAL
R4 000 divided into 4
000 ordinary shares of R1 each
ISSUED SHARE CAPITAL
R4 000
The following financial
information was submitted as follows:
STOCK R11 000 000
DEBTORS 30 / 60 days R13 000 000
CREDITORS local and foreign
R 5 000 000
SHAREHOLDERS LOANS R
3 000 000
TURNOVER Per annum R72
000 000
AUDITORS
TEMPLAR EAGLETON &
BARRY Pinetown: (031) 701-7815
FINANCIAL YEAR END
MAY
INSURANCE BROKERS
GLENRAND M I B
TRADE REFERENCES – SEPTEMBER
2006:
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old acc. R1 700 000 R 800 000 - 60
days 60 days Good
R1 000
000
2. Old acc. R1 000 000 R 200 000 - 90
days 90 days Good
R 300 000 By
arrangement
3. 7 yrs R 50 000 R 30 000 60
days 60 days Good
TRADE REFERENCES – MAY 2007
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 2000 R1
700 000 R250 000 60 days 90/120 days Average c/l (Seasonal)
2. 30 years± open acc R100
000- 60 days 60 days+ Excellent
R500 000 By arrangement
3. 7+ years open acc R 50 000 60
days 60/120 days Slow
CURRENT TRADE REFERENCES
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 20 yrs R 400 000 R100
000 60/90 day 90 days Slow
2. 8 yrs R1
700 000 R150 000 60 days 90/120 days Slow
3. 6 yrs account
on hold 30 days 150/180 days Slow
COMMENTS
This is an established company, meeting its commitments slowly. It is suggested that dealings to an extent of US$1 000 000 be on a letter of credit basis only. The subject appears to be experiencing cash flow problems and the factoring of their book is a cautionary indication.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)